Tomatoes or Tomato Pickers? - Free Trade and Migration in the NAFTA Case
This paper examines the relationship between trade liberalisation and migration in the case of Mexico. The increasing bilateral trade between Mexico and the United States after signing the North American Free Trade Agreement (NAFTA) was supposed to stem the illegal Mexican migration flow by contributing to economic growth and job creation in both countries. Twelve years after the treaty has come into effect questions emerge to what extent NAFTA was able to reduce the migration pressure: are trade and migration substitutes like the policy-makers had assumed or are they complements? Using monthly data from 1966 until 2004 we estimate a distributed lag model with the number of apprehensions at the US-Mexican border as a proxy for illegal migration. The results indicate that increasing trade flows cause larger illegal migration from Mexico to the United States.
|Date of creation:||Dec 2006|
|Date of revision:||Dec 2006|
|Contact details of provider:|| Postal: |
Phone: +49-6221-54 2905
Fax: +49-6221-54 2914
Web page: http://www.awi.uni-heidelberg.de/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James R. Markusen & Stephen Zahniser, 1997. "Liberalization and Incentives for Labor Migration: Theory with Applications to NAFTA," NBER Working Papers 6232, National Bureau of Economic Research, Inc.
- David Mckenzie & Hillel Rapoport, 2004.
"Network Effects and the Dynamics of Migration and Inequality: Theory and Evidence from Mexico,"
2004-3, Bar-Ilan University, Department of Economics.
- Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
- Raúl Hinojosa-Ojeda & Sherman Robinson, 1992. "Diversos escenarios de la integración de los Estados Unidos y México: enfoque de equilibrio general computable," Economía Mexicana NUEVA ÉPOCA, , vol. 0(1), pages 71-144, January-J.
- Newey, Whitney & West, Kenneth, 2014.
"A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix,"
Publishing House "SINERGIA PRESS", vol. 33(1), pages 125-132.
- Newey, Whitney K & West, Kenneth D, 1987. "A Simple, Positive Semi-definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix," Econometrica, Econometric Society, vol. 55(3), pages 703-08, May.
- Whitney K. Newey & Kenneth D. West, 1986. "A Simple, Positive Semi-Definite, Heteroskedasticity and AutocorrelationConsistent Covariance Matrix," NBER Technical Working Papers 0055, National Bureau of Economic Research, Inc.
- Bowen, Harry P. & Pédussel Wu, Jennifer, 2004.
"Does it matter where immigrants work? Traded goods, non-traded goods, and sector specific employment,"
ZEI Working Papers
B 16-2004, ZEI - Center for European Integration Studies, University of Bonn.
- Harry P. Bowen & Jennifer Pedussel wu, 2004. "Does IT matter where immigrants work? Traded goods, non-traded goods, and sector specific employment," Vlerick Leuven Gent Management School Working Paper Series 2004-14, Vlerick Leuven Gent Management School.
- Kusum Mundra, 2005. "Immigration and International Trade: A Semiparametric Empirical Investigation," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 14(1), pages 65-91.
- Roberto Coronado & Pia M. Orrenius, 2003. "The impact of illegal immigration and enforcement on border crime rates," Working Papers 0303, Federal Reserve Bank of Dallas.
- Gordon H. Hanson, 2006.
"Illegal Migration from Mexico to the United States,"
NBER Working Papers
12141, National Bureau of Economic Research, Inc.
- Gordon H. Hanson, 2006. "Illegal Migration from Mexico to the United States," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 869-924, December.
- George J. Borjas & Eric O'N. Fisher, 2001.
"Dollarization and the Mexican labor market,"
Federal Reserve Bank of Cleveland, pages 626-647.
- Collins, W-J & O'Rourke, K-H & Williamson, J-G, 1997.
"Were Trade and Factor Mobility Substitutes in History?,"
97/15, College Dublin, Department of Political Economy-.
- Collins, William J & O'Rourke, Kevin Hjortshøj & Williamson, Jeffrey G, 1997. "Were Trade and Factor Mobility Substitutes in History?," CEPR Discussion Papers 1661, C.E.P.R. Discussion Papers.
- William J. Collins & Kevin H. O'Rourke & Jeffrey Williamson, 1997. "Were Trade and Factor Mobility Substitutes in History?," NBER Working Papers 6059, National Bureau of Economic Research, Inc.
- Rotte, Ralph & Vogler, Michael, 1998.
"Determinants of International Migration: Empirical Evidence for Migration from Developing Countries to Germany,"
IZA Discussion Papers
12, Institute for the Study of Labor (IZA).
- Rotte, Ralph & Vogler, Michael, 1998. "Determinants of International Migration: Empirical Evidence for Migration from Developing Countries to Germany," CEPR Discussion Papers 1920, C.E.P.R. Discussion Papers.
- Sourafel Girma & Zhihao Yu, 2002. "The link between immigration and trade: Evidence from the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(1), pages 115-130, March.
- Patricio Aroca & William F. Maloney, 2005. "Migration, Trade, and Foreign Direct Investment in Mexico," World Bank Economic Review, World Bank Group, vol. 19(3), pages 449-472.
- Eric Zivot & Donald W.K. Andrews, 1990.
"Further Evidence on the Great Crash, the Oil Price Shock, and the Unit Root Hypothesis,"
Cowles Foundation Discussion Papers
944, Cowles Foundation for Research in Economics, Yale University.
- Zivot, Eric & Andrews, Donald W K, 1992. "Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(3), pages 251-70, July.
- Zivot, Eric & Andrews, Donald W K, 2002. "Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 25-44, January.
- Rivera-Batiz, Francisco L, 1986. "Can Border Industries Be a Substitute for Immigration?," American Economic Review, American Economic Association, vol. 76(2), pages 263-68, May.
- Feenstra, Robert C. & Hanson, Gordon H., 1997.
"Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras,"
Journal of International Economics,
Elsevier, vol. 42(3-4), pages 371-393, May.
- Robert C. Feenstra & Gordon H. Hanson, 1995. "Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras," NBER Working Papers 5122, National Bureau of Economic Research, Inc.
- J. E. Stiglitz, 1999. "Introduction," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 28(3), pages 249-254, November.
- David Law & John Bryant & Murat Genc, 2004.
"Trade and Migration to New Zealand,"
Econometric Society 2004 Australasian Meetings
231, Econometric Society.
- James R. Markusen & Anthony J. Venables, 1995.
"Multinational Firms and The New Trade Theory,"
NBER Working Papers
5036, National Bureau of Economic Research, Inc.
- Lopez, Ramon & Schiff, Maurice, 1995. "Migration and the skill composition of the labor force : the impact of trade liberalization in developing countries," Policy Research Working Paper Series 1493, The World Bank.
- Markusen, James R., 1983. "Factor movements and commodity trade as complements," Journal of International Economics, Elsevier, vol. 14(3-4), pages 341-356, May.
- Michael Fertig, 2001. "The economic impact of EU-enlargement: assessing the migration potential," Empirical Economics, Springer, vol. 26(4), pages 707-720.
When requesting a correction, please mention this item's handle: RePEc:awi:wpaper:0429. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gabi Rauscher)
If references are entirely missing, you can add them using this form.